As the United States evaluates stricter trade regulations to prevent advanced chip technology from reaching China, Nvidia, a U.S.-based chipmaker, is reportedly developing a version of its new artificial intelligence chips that will adhere to these regulations.
According to Reuters, Nvidia is creating a version of its Blackwell AI chips specifically for the Chinese market, working in partnership with local distributor Inspur. This chip is tentatively named the “B20” and is expected to begin shipping in the second quarter of 2025. Nvidia has not commented on this development.
The company currently offers three chips designed to comply with U.S. export controls, including the H20, for which Nvidia recently reduced prices due to sluggish sales and competition from domestic rival Huawei. However, sources indicate that sales of the H20 are now increasing, with projections suggesting that Nvidia will sell over one million of these chips in China this year, generating around $12 billion in revenue, despite the existing U.S. trade restrictions. This projected sales figure is nearly double the expectations for Huawei’s Ascend 910B chip, according to SemiAnalysis data.
However, analysts at Jefferies warned that Nvidia’s H20 chips may face additional risks from forthcoming U.S. trade regulations. In the upcoming annual review of semiconductor export controls this October, Jefferies analysts believe it is “highly likely” that the H20 will be banned from sale to China. Possible scenarios for the ban include a specific prohibition on the product, a reduction in the allowed computing power, or limitations on memory capacity.
Moreover, the U.S. may extend export controls to chips sold to other countries in the region, such as Malaysia, Indonesia, and Thailand, or even to overseas Chinese companies, although the latter would pose more challenges for implementation, according to analysts.